Hey there. I’ve never done this before, but with today’s video I’ve re-purposed a snippet of a longer conversation I had last week with Jon Coumes of the Safe For Democracy podcast. I’m doing this because I went on a (somewhat profane) rant that answers a question I get from a lot of people. What is Obama’s foreign policy legacy, and how should we look at it historically speaking? It’s way too early to tell of course, but I have a pretty good idea. The channel usually tries to deal with current issues, and though we’re still dealing with all of his wars, Obama is not a current issue. So I won’t be doing a more produced video on the topic.
But I think this video answers the question pretty handily…
Over the past year Saudi Arabia has experienced a perfect storm of factors in its favor. Asset prices in the US economy and elsewhere have gone nuts. Saudi Arabia is a country that owns a lot of stock, land and everything else, so that’s been very helpful. On the oil market front, the most important front there is for Saudi Arabia, they’ve had unprecedented cooperation on the OPEC production slow-down, and a series of competitors have given up millions of barrels a day in production due to sundry wars and dictatorships.
If Saudi Arabia’s ambitious plans for the future were ever going to work, 2017 would have been the year for it. But as this video shows, some of the key metrics that illustrate the hole Saudi Arabia is in haven’t changed much at all. As I said in last year’s video, and as I repeat in today’s video… Saudi Arabia is still finished.
Back when I started doing this channel full time, I put out a series called “Notes From The Golden Age“. Today’s video, on the defeat of OPEC, is a long delayed addition to the series. In the six minutes of the video itself, I just laid out the facts as I understand them: The fact that OPEC did its level best to raise the price of oil, and they failed. If you want to hear more about why that is, and hear some discussion of the revolution in petroleum affairs we’ve experienced over the past five years, you could do worse than this video here.
Put briefly, oil doesn’t cost what it used to. The origin of this development is probably OPEC itself. That cartel drastically reduced the oil on the market on a couple occasions in the 1970s, driving the price through the roof. Much has, quite rightly, been made of the Shale revolution in the United States. A range of technological advances has made oil extraction easier, cheaper, and viable in places that it wasn’t before. This revolution has made US production competitive with Saudi Arabia again, and caused the plummet in prices that started in mid 2014. But the Shale revolution is only the most dramatic cause.
The plummet in oil prices is the result of a range of reactions to OPEC’s obscene market power. An under-heralded one is energy efficiency. We have finally reached a point where economic growth is decoupling from growth in petrochemical use. Some of this is renewables, but more of it is the very, very unsexy business of making cars and air conditioning units run more efficiently. Another reaction to OPEC was the broadening of the search for petroleum. Coupled with Technological advances, a staggering range of countries now produce significant amounts of oil and gas. OPEC has been beaten. They largely did it to themselves.
Our discussion was wide-ranging and topical, moving from Trump’s trip to Saudi Arabia, to ISIS, Manchester and the current unrest in Bahrain. Davidson’s deep knowledge of the area, and insightful analysis shed new light on issues in Iran, Libya, Iraq, Saudi Arabia, Bahrain, and a few countries I’m probably forgetting to mention. The success of Shadow Wars indicates that their is an appetite for commentary that moves out of the typical range of Military Industrial Complex approved discussion. I’d highly suggest you listen to this discussion and then head straight out and buy yourself a copy of his book…